BYD electric vehicles are displayed at a BYD By 1826 cafe and car dealership in Singapore Sept 7, 2023. REUTERS/Edgar Su/File photo
Electric vehicle sales are seeing continued strength globally with China reporting record monthly sales in October despite the end of subsidies, according to market research firm Rho Motion.
China ended an 11-year subsidy scheme for EV purchases in 2022, but some local authorities have continued to offer aid or tax rebates to attract investments as well as subsidies for consumers.
EV sales in China, the world’s largest auto market, increased 29 percent year-to-date in September. The global EV market showed 34 percent growth in the same period.
China is entering the final two months of the year which are seasonally high for vehicle sales, according to Rho Motion.
“What’s notable about October’s figures is that EV demand in China continues to reach record highs even though the subsidies were cut … 2023 is set to be another banner year for China in terms of EV sales,” the market research firm said.
READ: China’s Aug auto sales jump 32% with strong EV demand
EV sales grew 26 percent in European markets, where cutting of subsidies has weighed on demand as seen in Germany where business subsidies were done away with in September, according to Rho Motion.
“This (subsidies) is an important factor in the German market as nearly two-thirds of passenger car registrations are commercial,” the market research firm said.
Tesla, Mercedes Benz and Volkswagen have warned high interest rates and a subdued market in the region are putting customers off.
A Be.EV electric vehicle charging bay is seen at a car park in Manchester, Britain, Sept 8, 2023. REUTERS/Phil Noble/File photo
EV sales in North America were up 78 percent so far this year.
“The North American market continues to have a strong 2023, with Tesla still taking the lion’s share of demand as legacy automakers temper ambitions of scaling production,” Rho Motion said.
READ: Tesla in talks with India for a factory with 500,000 annual capacity – report
Still, Tesla’s market share slipped to the lowest on record at about 50 percent during the third quarter despite price cuts, according to a report by dealer services firm Cox Automotive in October.